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HomeMy WebLinkAboutSEPTEMBER 11, 1986 11'1 I C it Jr c> r Vi 1- g i 1 ~ i <- 1. 13~<- 1.C 1 "1 "WORLD'S LARGEST RESORT CITY" (Try COUNCIL ,,1A'r'OR ROBERT G. JONES, At Lnge '.'ICE MA YOR MEYERA E. OBERNDORF, At Large .\LBERT W BALKO, Lynnhaven Boro"~h ,'OHN A. BAUM, Blackwater Boro"gh .'tOBERT E. FENTRESS, Virginia Beach Boro"gh 'lAROLIJ HEISCHOBER, At Large .'JARBARA M. HENLEY, P"ngo Boro"gh 'lEBA S. McCL\NAN, Pnncess Anne Boro"~h ,OliN V MOSS, Kempsv,{(e Boro"gh '.JANeY K PARKER, At Large ,'OliN L. PERRY, BaYSlde Boro"gh IWTIi HODGES SMITH, CMC, City Clerk CITY COUNCIL AGENDA 281 CITY HALL BUILDING MUNICIPAL CENTER VIRGINIA BEACH, VIRGINIA 23456-9002 (804) 427-4303 September 11, 1986 VIRGINIA BEACH CITY COUNCIL ITEM III. FORMAL SESSION: VIRGINIA BEACH CITY COUNCIL - Council Chambers - 4:00 PM A. RECONVENE / CALL TO ORDER - Mayor Robert G. Jones B. PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA C. ELECTRONIC ROLL CALL OF CITY COUNCIL D. REFUNDING ISSUANCE OF BONDS E. CITY MANAGER ANNOUNCEMENT F. ADJOURNMENT MINUTES VIRGINIA BEACH CITY COUNCIL Virginia Beach, Virginia September 11, 1986 Mayor Jones called to order the RECONVENED SESSION of the VIRGINIA BEACH CITY COUNCIL in the Council Chambers, City Hall Building, on Thursday, September 11, 1986, at 4:00 P.M. Council Members Present: Albert W. Balko, Robert E. Fentress, Barbara M. Henley, Mayor Robert G. Jones, Reba S. McClanan, Nancy K. Parker and John L. Perry Council Members Absent: Councilman John A. Baum was absent due to the death of his father. Councilman Harold Heischober was absent due to business committments Councilman John D. Moss was absent due to business committments Vice Mayor Meyera E. Oberndorf (ENTERED: 4:05 P.M.) - 2 - R E CON V ENE D S E S S ION VIRGINIA BEACH CITY COUNCIL September 11, 1986 4:00 P.M. Upon motion by Councilwoman Parker, seconded by Councilman Perry, City Council RECONVENED the FORMAL SESSION of the VIRGINIA BEACH CITY COUNCIL in the Council Chambers, City Hall Building, on Thursday, September 11, 1986, at 4:00 P.M. Voting: 7-0 Council Members Voting Aye: Albert W. Balko, Robert E. Fentress, Barbara M. Henley, Mayor Ro bert G. J one s , Re ba S. McClanan, Nancy K. Parker and John L. Perry Council Members Voting Nay: None Council Members Absent: John A. Baum, Harold Heischober, John D. Moss and Vice Mayor Meyera E. Oberndorf PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA September 11, 1986 - 3 - Item III-D.1.a. REFUNDING ISSUANCE OF BONDS ITEM # 26000 Giles Dodd, Assistant City Manager for Administration, advised in June, City Council AUTHORIZED the City to confer with the State Council on Local Debt to obtain approval for REFUNDING a portion of several bond issues. Mr. Dodd introduced the City's underwriters, GOLDMAN, SACHS & COMPANY, to present a proposal to City Council. GOLDMAN, SACHS & COMPANY was represented by Arthur Spector, head of the Infrastructure Group and Robin Wiessmann, Vice President - Municipal Finance Department. Mr. Arthur Spector advised if the City accepted the refunding high interest rate debt with lower interest rates, it would provide the City with gross debt service savings of $3.6 MILLION and present value savings of over $2.1 Million, nearly 26% more than the 5% minimum State threshold. FINAL PRICING INFORMATION concerning $34,325,000 GENERAL OBLIGATION REFUNDING BONDS for the CITY OF VIRGINIA BEACH, VIRGINIA, was distributed to City Council. (Copy of this brochure is hereby made a part of the record). Robin Wiessmann reiterated the SUMMARY OF OBLIGATION REFUNDING BONDS, SERIES, 1986: RESULTS concerning GENERAL Par Amount of Refunded Bonds $34,325,000 Premium Necessary $ 7,710,240 True Interest Cost (for purposes of the 7.042% required present value computation) Average Interest Cost (for purposes of 7.010% sizing the escrow) Gross Savings $ 3,622,484 Present Value Savings $ 2,151,465 Present Value Savings as a Percentage of 6.267% The Refunded Bonds Robin Wiessman advised the City's Rating was Aa/ AA and the only other Bond Issue comparable in terms of credit was the Pinellas Sports Authority in Florida and their rating was a Aaa/AAA FGIC Insured Bond Issue so the rating technically is better than the City's. Virginia Beach has lower takedown and many lower yields than the FGIC: Pinellas Sports Authority Florida City of Virginia Beach Virginia Takedowns: 1995-2001 $10/$1,000 of production $15/$1,000 1989-2004 $7.18/$1,000 of production $8.75/$1,224 of production 2002-2004* Virginia Beach has PREMIUM BONDS which appear to have a lower basis point differential than New York State. September 11, 1986 - 4 - Item III-D.1.a. REFUNDING ISSUANCE OF BONDS ITEM # 26000 (Continued) Robin Wiessmann further reiterated the SPREAD BREAKDOWN: Par Amount: $34,325,000 8.75 .50 1.00 1.35 $11.60 per $1,224 of production Production: $42,035,240 $7.15 .41 .82 1 .10 Takedown Underwriting Management Fee Expenses Takedown Underwriting Management Fee Expenses $9.48 per $1,000 of production This represents the lowest spread for any negotiated public offering of a long term fixed rate issue within the Commonwealth of Virginia within the last two years. The NET PRESENT VALUE SAVINGS equals $2,151,465.25. The SAVINGS on an Annual Basis are listed under EXHIBIT C of the aforementioned brochure. The TOTAL CONTRACT OF PURCHASE is $41,637,070.85 which represents the production plus accrued interest from the date of interest through the time of closing. September 11, 1986 I, , - 5 - Item III-D.1.b. RESOLUTIONS ITEM # 26001 Upon motion by Councilman Fentress, seconded by Vice Mayor Oberndorf, City Council ADOPTED: RESOLUTION AUTHORIZING THE ISSUANCE, SALE AND AWARD OF $26,090,000 GENERAL OBLIGATION PUBLIC IMPROVEMENT REFUNDING BONDS, SERIES OF 1986, OF THE CITY OF VIRGINIA BEACH, VIRGINIA, PROVIDING FOR THE FORM, DETAILS AND PAYMENT THEREOF AND PROVIDING FOR THE REFUNDING, IN PART, OF THE CITY'S $19,095,000 PUBLIC IMPROVEMENT BONDS, SERIES OF 1982, $1,300,000 GENERAL OBLIGATION ROAD BONDS, SERIES OF 1982, AND $27,970,000 PUBLIC IMPROVEMENT BONDS, SERIES OF 1984. Voting: 8-0 Council Members Voting Aye: Albert W. Balko, Robert E. Fentress, Barbara M. Henley, Mayor Robert G. Jones, Reba S. McClanan, Vice Mayor Meyera E. Oberndorf, Nancy K. Parker and John L. Perry Council Members Voting Nay: None Council Members Absent: John A. Baum, Harold Heischober and John D. Moss September 11, 1986 1,1 I I I - 5a - At a adjourned meeting of the City Council of the City of Virginia Beach, Virginia, held on the 11th day of September, 1986, at which the following members were present and absent: PRESENT: Albert W. Balko Robert E. Fentress Barbara M. Henley Mayor Robert G. Jones Reba S. McClanan Vice Mayor Meyera E. Oberndorf Nancy K. Parker John L. Perry , ABSENT: John A. Baum Harold Heischober John D. Moss the following resolution was adopted by the affirmative roll call vote of a majority of all members of the City Council, the ayes and nays being recorded in the minutes of the meeting as shown below: MEMBER Albert W. Balko Robert E. Fentress Barbara M. Henley Mayor Robert G. Jones Reba S. McClanan Vice Mayor Meyera E. Oberndorf Nancy K. Parker John L. Perry VOTE Aye Aye J1.ye Aye Aye Aye Aye Aye RESOLUTION AUTHORIZING THE ISSUANCE, SALE AND AWARD OF $26,090,000 GENERAL OBLIGATION PUBLIC IMPROVEMENT REFUNDING BONDS, SERIES OF 1986, OF THE CITY OF VIRGINIA BEACH, VIRGINIA, PROVIDING FOR THE FORM, DETAILS AND PAYMENT THEREOF AND PROVIDING FOR THE REFUNDING, IN PART, OF THE CITY'S $19,095,000 PUBLIC IMPROVEMENT BONDS, SERIES OF 1982, $1,300,000 GENERAL OBLIGATION ROAD BONDS, SERIES OF 1982, AND $27,970,000 PUBLIC IMPROVEMENT BONDS, SERIES OF 1984 II' I I I -2- WHEREAS, there are outstanding $16,995,000 of the $19,095,000 Public Improvement Bonds, Series of 1982, of the City of Virginia Beach, virginia (the City), authorized by an ordi- nance adopted by the City Council on November 2, 1982, and $1,105,000 of the $1,300,000 General Obligation Road Bonds, Se- ries of 1982, of the City and $26,805,000 of the $27,970,000 Pub- lic Improvement Bonds, Series of 1984, of the City authorized by ordinances adopted by the City Council on August 27, 1980, and approved at an election on November 4, 1980; WHEREAS, it appears that the City can effect considerable savings by issuing refunding bonds in the amount of $26,090,000 to refund $8,280,000 of the $19,095,000 Public Improvement Bonds, Series of 1982, which mature on or after November 1, 1995, $520,000 of the $1,300,000 General Obligation Road Bonds, Series of 1982, which mature on or after November 1, 1995 (collectively, the 1982 Bonds), and $17,290,000 of the $27,970,000 Public Im- provement Bonds, Series of 1984, which mature on or after July 15, 1997 (the 1984 Bonds) (the 1982 Bonds and the 1984 Bonds collectively, the Refunded Bonds), and to pay costs to be in- curred in connection with the refunding, and by calling for re- demption the 1982 Bonds on November 1, 1992, and the 1984 Bonds on July 15, 1994; WHEREAS, the issuance of such refunding bonds has been approved by the State Council on Local Debt as required by Sec- tion 15.1-193, Code of Virginia of 1950, as amended; and I i I -3- WHEREAS, a representative of Goldman, Sachs & Co. has presented a purchase agreement dated the date hereof to purchase the City's general obligation public improvement refunding bonds in the principal amount of $26,090,000, a copy of which is at- tached hereto as Exhibit A, and representatives of Government Fi- nance Associates, Inc. and Government Finance Research Center (the Financial Advisors) have recommended that the City accept the proposal of Goldman, Sachs & Co. as being a desirable propos- al in light of current conditions of the municipal market; BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VIR- GINIA BEACH, VIRGINIA: 1. There are hereby authorized to be issued and sold $26,090,000 general obligation public improvement refunding bonds of the City to refund the Refunded Bonds. 2. After consideration of the methods of sale of bonds and the current state of the municipal bond market, it IS hereby determined to be in the best interest of the City to accept the proposal of Goldman, Sachs & Co. to purchase the bonds for resale to the public, and the bonds are hereby awarded to Goldman, Sachs & Co. in accordance with the terms of its purchase agree- ment. The City Manager is hereby authorized ~o execute such agreement and deliver it to Goldman, Sachs & Co. 3. The bonds shall be designated "General Obligation Public Improvement Refunding Bonds, Series of 1986," shall be dated September 1, 1986, shall be in fully registered form, in ,I I I I -4- denominations of $5,000 and multiples thereof, and shall be num- bered R-l upward. The bonds shall mature in installments on July 15 in years and amounts as follows: Year Amount Rate Year Amount Rate 1995 $1,020,000 15.00% 2000 $3,090,000 6.75% 1996 1,070,000 15.00 2001 3,185,000 12.75 1997 2,630,000 15.00 2002 3,485,000 12.75 1998 2,915,000 6.60 2004 5,695,000 6.90 1999 3,000,000 6.70 Each bond shall bear interest payable semiannually on January 15 and July 15, beginning July 15, 1987, (a) from September 1, 1986, if it is authenticated prior to January 15, 1987, or (b) other- wise from the January 15 or July 15 that is, or immediately pre- cedes, the date on which it is authenticated (unless payment of interest thereon is in default, in which case such bond shall bear interest from the date to which interest has been paid). Principal and premium, if any, shall be payable to the registered owners upon surrender of bonds as they become due at the corpo- rate trust office of Citibank, N.A., New York, New York (the Reg- istrar). Interest shall be payable by check or draft mailed to the registered owners at their addresses as they appear on the registration books kept by the Registrar. Principal, premium, if any, and interest shall be payable in lawful money of the United States of America. 4. Bonds maturing on or before July 15, 1997, are not subject to optional redemption prior to maturity. Bonds maturing on 0 r aft e r July 1 5 , 1998, except for bonds maturing on July I, ; -5- 15, 2001 and 2002, are subject to redemption prior to maturity at the option of the City on or after July 15, 1996, in whole at any time or in part on any interest payment date, upon payment of the following redemption prices (expressed as a percentage of the principal amount of bonds to be redeemed) plus interest accrued and unpaid to the redemption date: 102 \ if redeemed July 15, 1996, through July 14, 1997, inclusive; 101 1/2\ if redeemed July 15, 1997, through July 14, 1998, inclusive; 101 \ if redeemed July 15, 1998, through July 14, 1999, inclusive; 100 1/2\ if redeemed July 15, 1999, through July 14, 2000, inclusive; and 100 \ if redeemed July 15, 2000 and thereafter. 5. Bonds maturing on July 15, 2004, are required to be redeemed prior to maturity in part, on July 15 in years and amounts as follows: Year Amount 2003 2004(Final Maturity} $2,750,000 $2,945,000 6. If less than all of the bonds are called for redemp- tion, the bonds to be redeemed shall be selected by the City's chief financial officer in such manner as he may determine to be in the best in~erest of the City, each portion of $5,000 princi- pal amount being counted as one bond for such purpose; provided, however if less than all of any maturity is called for redemp- tion, the bonds to be redeemed within such maturity shall be se- lected by lot by the Registrar. The City shall cause notice of the call for redemption identifying the bonds or portions thereof to be redeemed to be sent by registered or certified mail not less than 30 nor more than 60 days prior to the redemption -6- date to the registered owners thereof. If a portion of a bond 1S called for redemption, a new bond in principal amount equal to the unredeemed portion thereof shall be issued to the registered owner upon the surrender thereof. 7. The bonds shall be signed by the facsimile signature of the Mayor, shall be countersigned by the facsimile signature of the Clerk, and a facsimile of the City's seal shall be printed thereon. No bond shall be valid until it has been authenticated , by the manual signature of an authorized officer or employee of the Registrar and the date of authentication noted thereon. 8. The bonds shall be in substantially the following form: REGISTERED REGISTERED No. R- $ UNITED STATES OF AMERICA COMMONWEALTH OF VIRGINIA CITY OF VIRGINIA BEACH General Obligation Public Improvement Refundinq Bonds, Series of 1986 INTEREST RATE MATURITY DATE DATED DATE CUSIP % July 15, September 1, 1986 REGISTERED OWNER: PRINCIPAL AMOUNT: DOLLARS -7- The City of Virginia Beach, virginia (the City), for value received, hereby promises to pay, upon surrender hereof at the corporate trust office of Citibank, N.A., New York, New York (the Registrar), to the registered owner hereof, or registered assigns or legal representative, the principal sum stated above on the maturity date stated above, subject to prior redemption as hereinafter provided, and to pay interest hereon semiannually on each January 15 and July 15, beginning July 15, 1987, at the an- nual rate stated above. Interest is payable (a) from Septem- ber 1, 1986, if this bond is authenticated prior to January 15, 1987, or (b) otherwise from the January 15 or July 15 that is, or immediately precedes, the date on which this bond is authenti- cated (unless payment of interest hereon is in default, in which case this bond shall bear interest from the date to which inter- est has been paid). Interest is payable by check or draft mailed to the person shown as owner h~reof at his address as it appears on the registration books kept by the Registrar on the 15th day of the month preceding each interest payment date. Principal, premium, if any, and interest are payable in lawful money of the United States of America. THE PROVISIONS OF THIS BOND ARE CONTINUED ON THE REVERSE HEREOF, AND SUCH CONTINUED PROVISIONS SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH ON THE FACE HEREOF. -8- All acts, conditions and things required by the Constitu- tion and statutes of the Commonwealth of Virginia to happen, exist or be performed precedent to and in the issuance of this bond have happened, exist and have been performed, and the issue of bonds of which this bond is one, together with all other in-' debtedness of the City, is within every debt and other limit pre- scribed by the Constitution and statutes of the Commonwealth of Virginia. This bond shall not be valid until the Registrar shall have executed the Certificate of Authentication appearing hereon and inserted the date of authentication hereon. IN WITNESS WHEREOF, the City of Virginia Beach, Virginia, has caused this bond to be signed by the facsimile signature of its Mayor, to be countersigned by the facsimile signature of its Clerk, a facsimile of its seal to be printed hereon, and this bond to be dated September 1, 1986. COUNTERSIGNED: (SEAL) Mayor, City of Virginia Beach, Virginia Clerk, City of Virginia Beach, Virginia Date Authenticated: -9- CERTIFICATE OF AUTHENTICATION This bond is one of the bonds described in the within- mentioned resolution. CITIBANK, N.A., Registrar By Authorized Signature (Reverse of Bond) ADDITIONAL BOND PROVISIONS This bond is one of an issue of $26,090,000 General Obli- gation Public Improvement Refunding Bonds, Series of 1986, of like date and tenor, except as to number, denomination, rate of interest, privilege of redemption and maturity, issued pursuant to a resolution adopted by the City Council on September 11, 1986, and the Constitution and statutes of the Commonwealth of Virginia, including the City Charter and the Public Finance Act, to refund $8,280,000 of the City's $19,095,000 Public Improvement Bonds, Series of 1982, authorized by an ordinance adopted by the City Council on November 2, 1982, and $520,000 of the City's $1,300,000 General Obligation Road Bonds, Series of 1982, and $17,290,000 of the City's $27,970,000 Public Improvement Bonds, Series of 1984, authorized by ordinances adopted by the City Council on August 27, 1980, and approved at an election on November 4, 1980. , I , -10- Bonds maturing on or before July 15, 1997, are not sub- ject to optional redemption prior to maturity. Bonds maturing on or after July 15, 1998, except for bonds maturing on July 15, 2001 and 2002, are subject to redemption prior to maturity at the option of the City on or after July 15, 1996, in whole at any time or in part on any interest payment date, upon payment of the following redemption prices (expressed as a percentage of the principal amount of bonds to be redeemed) plus interest accrued and unpaid to the redemption date: 102 % if redeemed July 15, 1996, through July 14, 1997, inclusive; 101 1/2% if redeemed July 15, 1997, through July 14, 1998, inclusive; 101 % if redeemed July 15, 1998, through July 14, 1999, inclusive; 100 1/2% if redeemed July 15, 1999, through July 14, 2000, inclusive; and 100 % if redeemed July 15, 2000 and thereafter. Bonds maturing on July 15, 2004, are required to be re- deemed prior to maturity in part, on July 15 in years and amounts as follows: Year Amount 2003 2004 (Final Maturity) $2,750,000 2,945,000 If less than all of the bonds are called for redemption, the bonds to be redeemed shall be selected by the City's chief financial officer in such manner as he may determine to be in the best interest of the City, each portion of $51000 principal amount being counted as one bond for such purpose; provided, how- ever, if less than all of any maturity is called for redemption, the bonds to be redeemed within such maturity shall be selected by lot by the _ Registrar. The City shall cause notice of the i I: i -11- call for redemption identifying the bonds or portions thereof to be redeemed to be sent by registered or certified mail not less than 30 nor more than 60 days prior to the redemption date to the registered owner of each bond to be redeemed at his address as it appears on the registration books kept by the Registrar. If a portion of this bond is called for redemption, a new bond in principal amount equal to the unredeemed portion hereof will be , issued to the registered owner upon the surrender hereof. The full faith and credit of the City are hereby irrevocably pledged for the payment of principal of and interest on this bond. The bonds are issuable as fully registered bonds in denominations of $5,000 and multiples thereof. Upon surrender of this bond at the corporate trust office of the Registrar, togeth- er with an assignment duly executed by the registered owner or his duly authorized attorney or legal representative in such form as shall be satisfactory to the Registrar, the City shall exe- cute, and the Registrar shall authenticate and deliver in ex- change, a new bond or bonds having an equal aggregate principal amount, in authorized denominations, of the same form and maturi- ty, bearing interest at the same rate, and registered In names as . requested by the then registered owner hereof or his duly autho- rized attorney or legal representative, all subject to the limi- tations and conditions provided in the resolution authorizing the issuance of the bonds. Any such exchange shall be at the expense i 1,1 I -12- of the City, except that the Registrar may charge the person re- questing such exchange the amount of any tax or other governmen- tal charge required to be paid with respect thereto. The Registrar shall treat the registered owner as the person exclusively entitled to payment of principal, premium, if any, and interest and the exercise of all other rights and powers of the owner, except that interest payments shall be made to the person shown as owner on the registration books on the 15th day of the month preceding each interest payment date. ASSIGNMENT FOR VALUE RECEIVED the undersigned hereby sell(s), as- sign(s) and transfer(s) unto PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF TRANSFEREE: (Please print or type name and address, including postal Zip code, of Transferee) the within bond and all rights thereunder, hereby irrevocably constituting and appointing , Attorney, to transfer said bond on the books kept for the registration there- of, with full power of substitution in the premises. -l~ Dated: Signature Guaranteed (Signature of Registered Owner) NOTICE: Signature(s) must be guaranteed by a member firm of the New York Stock Exchange or a commercial bank or trust company. NOTICE: The signature above must correspond with the name of the registered owner as it appears on the front of this bond in every particular, without alteration or enlarge- ment or any change whatsoever. 9. The full faith and credit of the City are hereby irrevocably pledged for the payment of principal of and interest on the bonds. Unless other funds are lawfully available and ap- propriated for timely payment of the bonds, the City Council shall levy and collect an annual ad valorem tax over and above all other taxes authorized or limited by law on all taxable prop- erty in the City sufficient to pay the principal of and interest on the bonds, as the same become due and payable. 10. The Registrar shall maintain registration books for the registration of bonds. Upon surrender of any bond at the corporate trust office of the Registrar, together with an assign- ment duly executed by the registered owner or his duly authorized attorney or legal representative in such form as shall be sat is- factory to the Registrar, the City shall execute, and the Regis- trar shall authenticate and deliver in exchange, a new bond or bonds having an equal aggregate principal amount, in authorized denominations, of the same form and maturity, bearing interest at the same rate, and registered in names as requested by the then II, i I I -14- registered owner thereof or his duly authorized attorney or legal representative. Any such exchange shall be at the expense of the City, except that the Registrar may charge the person requesting such exchange the amount of any tax or other governmental charge required to be paid with respect thereto. The Registrar shall treat the registered owner as the person exclusively entitled to payment of principal, premium, if any, and 'interest and the exercise of all other rights and powers of the owner, except that interest payments shall be made to the person shown as owner on the registration books on the 15th day of the month preceding each interest payment date. 11. The City Manager, in collaboration with representa- tives of the Financial Advisors and Goldman, Sachs & Co., is hereby authorized and directed to complete the draft Official Statement, copies of which have been provided to members of the City Council, as the City's Official Statement pursuant to which the bonds shall be offered for sale. The City Manager shall arrange for the delivery to Goldman, Sachs & Co. of a reasonable number of copies of the Official Statement for delivery to each person to whom it and members of any syndicate or selling group initially sell the bonds. 12. The Mayor, the City Manager and the Clerk are hereby authorized and directed to take all proper steps to have the bonds prepared and executed in accordance with their terms and to deliver the bonds to or upon the order of Goldman, Sachs & Co. upon payment therefor. i I I i -15- 13. The City Manager and the City Treasurer, or either of them, are hereby authorized and directed to execute an Escrow De- posit Agreement between the City and Sovran Bank, N.A., Richmond, Virginia, as Escrow Agent (the Escrow Agent), providing for the irrevocable deposit of an amount of the proceeds of the bonds which will be sufficient, when invested in noncallable direct ob- ligations of the United States Government, to provide for payment of principal, premium, if any, and interest on the Refunded Bonds. The Escrow Deposit Agreement shall be in such form as shall be approved by the City Attorney and bond counsel for the City. 14. The City Treasurer is hereby authorized and directed to provide for the delivery of the portion of the proceeds of the bonds to the Escrow Agent for deposit in the escrow fund estab- lished by the Escrow Deposit Agreement and to provide for the de- posit of the remaining proceeds of the bonds in a special account to be used for payment of the costs of issuance of the bonds. The City Treasurer is further authorized and directed to take all such further action as may be necessary or desirable ln connec- tion with the payment and redemption of the Refunded Bonds. 15. The 1982 Bonds are hereby specifically and irrevocably called for redemption on November 1, 1992, and the 1984 Bonds are hereby specifically and irrevocably called for re- demption on July 15, 1994. The Escrow Deposit Agreement shall provide for notice of the call for redemption of the 1982 Bonds I I I I -16- to be published twice in both a financial journal published in the City of New York, New York, and in a newspaper of general circulation published in the City of Richmond, Virgina, the first publications of which shall appear not less than 30 nor more than 60 days prior to November 1, 1992. The Escrow Deposit Agreement shall also provide for notice of the call for redemption to be sent by registered or certified mail to the registered owners of the 1984 Bonds not less than 30 nor more than 60 days prior to July 15, 1994. 16. All other actions of officers of the City in confor- mity with the purposes and intent of this resolution and in fur- therance of the issuance and sale of the bonds are hereby ap- proved and confirmed. 17. The City represents that there have not been issue4, and covenants that there will not be issued, any obligations that would be treated as part of the same issue of obligations as the bonds within the meaning of Treasury Regulations Section 1.l03-13(b)(10) other than the $8,235,000 General Obligation Water and Sewer Refunding Bonds, Series of 1986, being authorized by a separate resolution on the date hereof. 18. The City covenants that it shall ~omply with the pro- posed Tax Reform Act of 1986 as set forth in the Conference Com- mittee Bill of the Committee of Conference consisting of members of the House Ways and Means Committee and the Senate Finance Com- mittee, or any successor legislation (the Act), to the extent , -17- any such legislation is applicable to the bonds, including provisions which may require the City at any time to rebate profits from the investment of the proceeds of the bonds - to the United States unless the City receives an opinion of nationally recog- nized bond counsel that such compliance is not required to pre- vent interest on the bonds from being includable in the gross In- come of the registered owners thereof under the law then in effect or any pending legislation. The City shall pay from its general funds the amount required to be rebated to the United States pursuant to the Act. 19. The City covenants that it shall not permit the gross proceeds of the bonds to be used in any manner that would result in (a) 5% or more of such proceeds being considered as having been used directly or indirectly to make or finance loans to per- sons other than a governmental unit as provided in the Act or (b) 10% or more of such proceeds being considered as having been used directly or indirectly in any trade or business carried on by any person other than a governmental unit as provided in such Act, unless the City receives an opinion of nationally recognized bond counsel that such restriction is not required ~o prevent the in- terest on the bonds from being includable in the gross income of the registered owners thereof under the laws then in effect or any pending legislation. Ii I I -18- 20. The City shall not take or omit to take any action the taking or omission of which will cause the bonds to be "arbi- trage bonds" within the meaning of Section l03(c) of the Internal Revenue Code of 1954, as amended, and regulations issued pursuant thereto. Such officers of the City as may be requested are hereby authorized and directed to execute an appropriate certifi- cate setting forth the expected use and investment of the pro- ceeds of the bonds in order to show that such expected use and investment will not violate the provisions of Section l03(c) and regulations issued pursuant thereto. Such certificate shall be ln such form as may be requested by bond counsel for the City. 21. All resolutions or parts of resolutions in conflict herewith are hereby repealed. 22. This resolution shall take effect immediately. The undersigned Clerk of the City of Virginia Beach, Vir- ginia, hereby certifies that the foregoing constitutes a true and correct ~xtract from the minutes of an adjourned meeting of the City Council of Virginia Beach held on the 11th day of September, 1986, and of the whole thereof so far as applicable to the mat- ters referred to in such extract. I I I I -19- WITNESS my signature and the seal of the City of Virginia Beach, Virginia, this 11 day of September, 1986. (SEAL) Clerk, City of Virginia Beach, Virginia - 6 - Item III-D.1.c RESOLUTIONS ITEM # 26002 Upon motion by Councilwoman Fentress, seconded by Councilwoman Parker, City Council ADOPTED: RESESOLUTION AUTHORIZING THE ISSUANCE, SALE AND AWARD OF $8,235,000 GENERAL OBLIGATION WATER AND SEWER REFUNDING BONDS, SERIES OF 1986, OF THE CITY OF VIRGINIA BEACH, VIRGINIA, PROVIDING FOR THE FORM, DETAILS AND PAYMENT THEREOF AND PROVIDING FOR THE REFUNDING, IN PART, OF THE CITY'S $7,500,000 GENERAL OBLIGATION WATER AND SEWER BONDS, SERIES OF 1982, AND $10,180,000 WATER AND SEWER BONDS, SERIES OF 1984. Voting: 8-0 Council Members Voting Aye: Albert W. Balko, Robert E. Fentress, Barbara M. Henley, Mayor Robert G. Jones, Reba S. McClanan, Vice Mayor Meyera E. Oberndorf, Nancy K. Parker and John L. Perry Council Members Voting Nay: None Council Members Absent: John A. Baum, Harold Heischober and John D. Moss Sent ember 11. 1986 - 6a - At a adjourned meeting of the City Council of the City of Virginia Beach, Virginia, held on the 11th day of September, 1986, at which the following members were present and absent: PRESENT: Albert W. Balko Robert E. Fentress Barbara M. Henley Mayor Robert G. Jones Reba S. McClanan Vice Mayor Meyera E. Oberndorf Nancy K. Parker John L. Perry ABSENT: John A. Baum Harold Heischober John D. Moss the following resolution was adopted by the affirmative roll call vote of a majority of all members of the City Council, the ayes and nays being recorded in the minutes of the meeting as shown below: MEMBER Albert W. Balko Robert E. Fentress Barbara M. Henley Mayor Robert G. Jones Reba S. McClanan Vice Mayor Meyera E. Oberndorf Nancy K. Parker John L. Perry VOTE Aye Aye Aye Aye Aye Aye Aye Aye RESOLUTION AUTHORIZING THE ISSUANCE, SALE AND AWARD OF $8,235,000 GENERAL OBLIGATION WATER AND SEWER REFUNDING BONDS, SERIES OF 1986, OF THE CITY OF VIRGINIA BEACH, VIRGINIA, PROVIDING FOR THE FORM, DETAILS AND PAYMENT THEREOF AND PROVIDING FOR THE REFUNDING, IN PART, OF THE CITY'S $7,500,000 GENERAL OBLIGATION WATER AND SEWER BONDS, SERIES OF 1982, AND $10,180,000 WATER AND SEWER BONDS, SERIES OF 1984 -2- WHEREAS, there are outstanding $7,300,000 of the $7,500,000 General Obligation Water and Sewer Bonds, Series of 1982, of the City of virginia Beach, Virginia (the City), and $9,425,000 of the $10,180,000 Water and Sewer Bonds, Series of 1984, of the City authorized by an ordinance adopted by the City Council on August 27, 1980, and approved at an election on November 4, 1980; WHEREAS, it appears that the City can effect considerable savings by issuing refunding bonds in the amount of $8,235,000 to refund $5,000,000 of the $7,500,000 General Obligation Water and Sewer Bonds, Series of 1982, which mature on or after November 1, 1995 (the 1982 Bonds), and $3,235,000 of the $10,180,000 Water and Sewer Bonds, Series of 1984, which mature on or after July 15, 1997 (the 1984 Bonds) (the 1982 Bonds and the 1984 Bonds collectively, the Refunded Bonds), and to pay costs to be in- curred in connection with the refunding, and by calling for re- demption the 1982 Bonds on November 1, 1992, and the 1984 Bonds on July 15, 1994; WHEREAS, the issuance of such refunding bonds has been approved by the State Council on Local Debt as required by Sec- tion 15.1-193, Code of Virginia of 1950, as amended; and WHEREAS, a representative of Goldman, Sachs & Co. has presented a purchase agreement dated the date hereof to purchase the City's general obligation water and sewer refunding bonds in the principal amount of $8,235,000, a copy of which is attached II; i I I -3- hereto as Exhibit A, and representatives of Government Finance Associates, Inc. and Government Finance Research Center (the Fi- nancial Advisors) have recommended that the City accept the pro- posal of Goldman, Sachs & Co. as being a desirable proposal ln light of current conditions of the municipal market; BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VIR- GINIA BEACH, VIRGINIA: 1. There are hereby authorized to be issued and sold $8,235,000 general obligation water and sewer refunding bonds of the City to refund the Refunded Bonds. 2. After consideration of the methods of" sale of bonds and the current state of the municipal bond market, it is hereby determined to be in the best interest of the City to accept the proposal of Goldman, Sachs & Co. to purchase the bonds for resale to the public, and the bonds are hereby awarded to Goldman, Sachs & Co. in accordance with the terms of its purchase agree- ment. The City Manager is hereby authorized to execute such agreement and deliver it to Goldman, Sachs & Co. 3. The bonds shall be designated "General Obligation Water and Sewer Refunding Bonds, Series of 1986," shall be dated September 1, 1986, shall be in fully registered form, in denomi- nations of $5,000 and multiples thereof, and shall be numbered R-l upward. The bonds shall mature in installments on September 1 in years and amounts as follows: -4- Year Amoun t Rate Year Amount Rate 1995 1996 1997 1998 $ 465,000 450,000 1,410,000 1,575,000 6.30% 6.40 15.125 15.25 1999 2000 2004 $1,770,000 540,000 2,025,000 6.70% 6.75 6.90 Each bond shall bear interest payable semiannually on January 15 and July 15, beginning July 15, 1987, (a) from September 1, 1986, if it is authenticated prior to January 15, 1987, or (b) otherwise from the January 15 or July 15 that is, or immediately precedes, the date on which it is authenticated (unless payment of interest thereon is in default, in which case such bond shall bear interest from the date to which interest has been paid). Principal and premium, if any, shall be payable to the registered owners upon surrender of bonds as they become due at the corpo- rate trust office of Citibank, N.A., New York, New York (the Reg- " istrar). Interest shall be payable by check or draft mailed to the registered owners at their addresses as they appear on the registration books kept by the Registrar. Principal, premium, if any, and interest shall be payable in lawful money of the United States of America. 4. Bonds maturing on or before July 15, 1998, are.not subject to redemption prior to maturity. Bonds maturing on or after July 15, 1999, are subject to redemption prior to maturity at the option of the City on or after July 15, 1996, ln whole at any time or in part on any interest payment date, upon payment of the following redemption prices (expressed as a percentage of the principal amount of bonds to be redeemed) plus interest accrued and unpaid to the redemption date: -5- 102 % if redeemed July 15, 1996, through July 14, 1997, inclusive; 101 1/2% if redeemed July 15, 1997, through July 14, 1998, inclusive; 101 % if redeemed July 15, 1998, through July 14, 1999, inclusive; 100 1/2% if redeemed July 15, 1999, through July 14, 2000, inclusive; and 100 % if redeemed July 15, 2000, and thereafter. 5. Bonds maturing on July 15, 2004, are required to be redeemed prior to maturity in part, on July 15 in years and amounts as follows: Year Amount Year Amount 2001 2002 $525,000 515,000 2003 2004 (Final Maturity) $500,000 485,000 6. If less than all of the bonds are called for redemp- tion, the bonds to be redeemed shall be selected by the City's chief financial officer in such manner as he may determine to be in the best interest of the City, each portion of $5,000 princi- pal amount being counted as one bond for such purpose; provided, however, if less than all of any maturity is called for redemp- tion, the bonds to be redeemed within such maturity shall be se- lected by lot by the Registrar The City shall cause notice of the call for redemption identifying the bonds or portions thereof to be redeemed to be sent by registered or certified mail not less than 30 nor more than 60 days prior to the redemption date to the registered owners thereof. If a portion of a bond is called for redemption, a new bond in principal amount equal to the unredeemed portion thereof shall be issued to the registered owner upon the surrender thereof. -6- 7. The bonds shall be signed by the facsimile signature of the Mayor, shall be countersigned by the facsimile signature of the Clerk, and a facsimile of the City's seal shall be printed thereon. No bond shall be valid until it has been authenticated by the manual signature of an authorized officer or employee of the Registrar and the date of authentication noted thereon. 8. The bonds shall be in substantially the following form: REGISTERED REGISTERED No. R- $ UNITED STATES OF AMERICA COMMONWEALTH OF VIRGINIA CITY OF VIRGINIA BEACH General Obligation Water and Sewer Refundinq Bonds, Series of 1986 INTEREST RATE MATURITY DATE DATED DATE CUSIP % September 1, ____ September 1, 1986 REGISTERED OWNER: PRINCIPAL AMOUNT: DOLLARS The City of Virginia Beach, Virginia (the City), for value received, hereby promises to pay, upon surrender hereof at the corporate trust office of Citibank, N.A., New York, New York -7- (the Registrar), to the registered owner hereof, or registered assigns or legal representative, the principal sum stated above on the maturity date stated above, subject to prior redemption as hereinafter provided, and to pay interest hereon semiannually on each January 15 and July 15, beginning July 15, 1987, at the an- nual rate stated above. Interest is payable (a) from Septem- ber 1, 1986, if this bond is authenticated prior to January 15, 1987, or (b) otherwise from the January 15 or July 15 that is, or immediately precedes, the date on which this bond is authenti- cated (unless payment of interest hereon is in default, in which case this bond shall bear interest from the date to which inter- est has been paid). Interest is payable by check or draft mailed to the person shown as owner hereof at his address as it appears on the registration books kept by the Registrar on the 15th day of the month preceding each interest payment date. Principal, premium, if any, and interest are payable in lawful money of the United States of America. THE PROVISIONS OF THIS BOND ARE CONTINUED ON THE REVERSE HEREOF, AND SUCH CONTINUED PROVISIONS SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH ON THE FACE HEREOF. All acts, conditions and things requi~ed by the Constitu- tion and statutes of the Commonwealth of Virginia to happen, exist or be performed precedent to and in the issuance of this bond have happened, exist and have been performed, and the issue of bonds of which this bond is one, together with all other -8- indebtedness of the City, is within every debt and other limit prescribed by the Constitution and statutes of the Commonwealth of virginia. This bond shall not be valid until the Registrar shall have executed the Certificate of Authentication appearing hereon and inserted the date of authentication hereon. IN WITNESS WHEREOF, the City of Virginia Beach, Virginia, has caused this bond to be signed by the facsimile signature of its Mayor, to be countersigned by the facsimile signature of its Clerk, a facsimile of its seal to be printed hereon, and this bond to be dated September 1, 1986. COUNTERSIGNED: (SEAL) Clerk, City of Virginia Beach, Virginia Mayor, City of Virginia Be Virginia Date Authenticated: CERTIFICATE OF AUTHENTICATION This bond is one of the bonds described in the within- mentioned resolution. -9- CITIBANK, N.A., Registrar By Authorized Signature (Reverse of Bond) ADDITIONAL BOND PROVISIONS This bond is one of an issue of $8,235,000 General Ob1i- gation Water and Sewer Refunding Bonds, Series of 1986, of like date and tenor, except as to number, denomination, rate of inter- est, privilege of redemption and maturity, issued pursuant to a resolution adopted by the City Council on September 11, 1986, and the Constitution and statutes of the Commonwealth of Virginia, including the City Charter and the Public Finance Act, to refund $5,000,000 of the City's $7,500,000 General Obligation Water and Sewer Bonds, Series of 1982, and $3,235,000 of the City's $10,180,000 Water and Sewer Bonds, Series of 1984, authorized by an ordinance adopted by the City Council on August 27, 1980, and approved at an election on November 4, 1980. Bonds maturing on or before July 15, 1998, are not sub- ject to redemption prior to maturity. Bonds maturing on or after July 15, 1999, are subject to redemption prior to maturity at the option of the City on or after July 15, 1996, in whole at any time or in part on any interest payment date, upon payment of the following redemption prices (expressed as a percentage of the principal amount of bonds to be redeemed) plus interest accrued and unpaid to the redemption date: I, , -10- 102 \ if redeemed July 15, 1996, through July 14, 1997, inclusive; 101 1/2\ if redeemed July 15, 1997, through July 14, 1998, inclusive; 101 \ if redeemed July 15, 1998, through July 14, 1999, inclusive; 100 1/2\ if redeemed July 15, 1999, through July 14, 2000, inclusive; and 100 \ if redeemed July 15, 2000, and thereafter. Bonds maturing on July 15, 2004, are required to be re- deemed prior to maturity in part, on July 15 in years and amounts as follows: Year Amount Year Amount 2001 2002 $525,000 515,000 2003 2004 (Final Maturity) $500,000 485,000 If less than all of the bonds are called for redemption, the bonds to be redeemed shall be selected by the City's chief financial officer in such manner as he may determine to be in the best interest of the City, each portion of $5,000 principal amount being counted as one bond for such purpose~ provided, how- ever, if less than all of any maturity is called for redemption, the bonds to be redeemed within such maturity shall be selected by lot by the .Registrar The City shall cause notice of the call for redemption identifying the bonds or portions thereof to be redeemed to be sent by registered or certified mail not less than 30 nor more than 60 days prior to the redemption date to the registered owner of each bond to be redeemed at his address as it appears on the registration books kept by the Registrar. If a portion of this bond is called for redemption, a new bond in principal amount equal to the unredeemed portion hereof will be issued to the registered owner upon the surrender hereof. -11- The City is required to charge rates or fees to users of its water and sewer system, to fix and maintain such rates or fees at such level as will produce sufficient revenues to pay all costs of operation and the principal of and interest on the bonds and any other bonds heretofore or hereafter issued on account of such system and secured by a pledge of water or sewer revenues, as the same become due. In addition, the full faith and credit of the City are hereby irrevocably pledged for the payment of principal of and interest on this bond. The bonds are issuable as fully registered bonds in denominations of $5,000 and multiples thereof. Upon surrender of this bond at the corporate trust office of the Registrar, togeth- er with an assignment duly executed by the registered owner or his duly authorized attorney or legal representative in such form as shall be satisfactory to the Registrar, the City shall exe- cute, and the Registrar shall authenticate and deliver in ex- change, a new bond or bonds having an equal aggregate principal amount, in authorized denominations, of the same form and maturi- ty, bearing interest at the same rate, and registered In names as requested by the then registered owner hereof or his duly autho- rized attorney or legal representative, all subject to the limi- . tations and conditions provided in the resolution authorizing the issuance of the bonds. Any such exchange shall be at the expense of the City, except that the Registrar may charge the person re- questing such exchange the amount of any tax or other governmental charge required to be paid with respect thereto. -12- The Registrar shall treat the registered owner as the person exclusively entitled to payment of principal, premium, if any, and interest and the exercise of all other rights and powers of the owner, except that interest payments shall be made to the person shown as owner on the registration books on the 15th day of the month preceding each interest payment date. ASSIGNMENT FOR VALUE RECEIVED the undersigned hereby sell(s), as- sign(s) and transfer(s) unto PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF TRANSFEREE: (Please print or type name and address, including postal Zlp code, of Transferee) Dated: -13- Signature Guaranteed (Signature of Registered Owner) NOTICE: Signature(s) must be guaranteed by a member firm of the New York Stock Exchange or a commercial bank or trust company. NOTICE: The signature above must correspond with the name of the registered owner as it appears on the front of this bond in every particular, without alteration or enlarge- ment or any change whatsoever. 9. The, full faith and credit of the City are hereby irrevocably pledged for the payment of principal of and interest on the bonds. It is hereby covenanted and agreed with the holders of the bonds that so long as any of the bonds are outstanding and unpaid the City shall: (a) charge rates or fees to users of its water and sewer system and fix and maintain such rates or fees at such level as will produce sufficient revenues to pay the cost of op- eration and administration, the cost of insurance against loss by injury to persons or property and the principal of and interest on the bonds authorized hereby and any other bonds heretofore or hereafter issued on account of such system and secured by a pledge of water or sewer revenues, as the same become due; (b) apply the revenues derived from the operation of such system in each fiscal year first to the payment of such costs of operation, administration and insurance during such year and then to the payment of principal of and interest on the bonds and any other bonds heretofore or hereafter issued on account of -14- such system and secured by a pledge of water or sewer revenues becoming due in such year; (c) unless other funds are lawfully available and appropriated for timely payment of the bonds, levy and collect an annual ad valorem tax over and above all other taxes authorized or limited by law on all locally taxable property in the City sufficient to pay the principal of an interest on the bonds, as the same become due; and (d) segregate and keep segregated from all other City funds all revenues derived from the operation of such system and keep proper records and accounts therefor, separate and apart from all other records and accounts. 10. The Registrar shall maintain registration books for the registration of bonds. Upon surrender of any bond at the corporate trust office of the Registrar, together with an assign- ment duly executed by the registered owner or his duly authorized attorney or legal representative in such form as shall be satis- factory to the Registrar, the City shall execute, and the Regis- trar shall authenticate and deliver in exchange, a new bond or bonds having an equal aggregate principal amount, in authorized denominations, of the same form and maturity, ,bearing interest at the same rate, and registered in names as requested by the then registered owner thereof or his duly authorized attorney or legal representative. Any such exchange shall be at the expense of the City, except that the Registrar may charge the person requesting -15- such exchange the amount of any tax or other governmental charge required to be paid with respect thereto. The Registrar shall treat the registered owner as the person exclusively entitled to payment of principal, premium, if any, and interest and the exerClse of all other rights and powers of the owner, except that interest payments shall be made to the person shown as owner on the registration books on the 15th day of the month preceding each interest payment date. 11. The City Manager, in collaboration with representa- tives of the Financial Advisors and Goldman, Sachs & Co., is hereby authorized and directed to complete the draft Official Statement, copies of which have been provided to members of the City Council, as the City's Official Statement pursuant to which the bonds shall be offered for sale. The City Manager shall arrange for the delivery to Goldman, Sachs & Co. of a reasonable number of copies of the Official Statement for delivery to each person to whom it and members of any syndicate or selling group initially sell the bonds. 12. The Mayor, the City Manager and the Clerk are hereby authorized and directed to take all proper steps to have the bonds prepared and executed in accordance with their terms and to deliver the bonds to or upon the order of Goldman, Sachs & Co. upon payment therefor. 13. The City Manager and the City Treasurer, or either of them, are hereby authorized and directed to execute an Escrow -16- Deposit Agreement between the City and Sovran Bank, N.A., Richmond, virginia, as Escrow Agent (the Escrow Agent), providing for the irrevocable deposit of an amount of the proceeds of the bonds which will be sufficient, when invested in noncallable di- rect obligations of the United States Government, to provide for payment of principal, premium, if any, and interest on the Re- funded Bonds. The Escrow Deposit Agreement shall be in such form as shall be approved by the City Attorney and bond counsel for the City. 14. The City Treasurer is hereby authorized and directed to provide for the delivery of the portion of the proceeds of the bonds to the Escrow Agent for deposit in the escrow fund estab- lished by the Escrow Deposit Agreement and to provide for the de- posit of the remaining proceeds of the bonds in a special account to be used for payment of the costs of issuance of the bonds. The City Treasurer is further authorized and directed to take all such further action as may be necessary or desirable in connec- tion with the payment and redemption of the Refunded Bonds. 15. The 1982 Bonds are hereby specifically and irrevocably called for redemption on November 1, 1992, and the 1984 Bonds are hereby specifically and irrevocably called for re- demption on July 15, 1994. The Escrow Deposit Agreement shall provide for notice of the call for redemption of the 1982 Bonds to be published twice in both a financial journal published in the City of New York, New York, and in a newspaper of general -17- circulation published in the City of Richmond, virgina, the first publication of which shall appear not less than 30 nor more than 60 days prior to November 1, 1992. The Escrow Deposit Agreement shall also provide for notice of the call for redemption to be sent by registered or certified mail to the registered owners of the 1984 Bonds not less than 30 nor more than 60 days prior to July 15, 1994. 16. All other actions of officers of the City in confor- mity with the purposes and intent of this resolution and in fur- therance of the issuance and sale of the bonds are hereby ap- proved and confirmed. 17. The City represents that there have not been issued, and covenants that there will not be issued, any obligations that would be treated as part of the same issue of obligations as the bonds within the meaning of Treasury Regulations Section 1.103-l3(b)(10) other than the $26,090,000 General Obligation Public Improvement Refunding Bonds, Series of 1986, being autho- rized by a separate resolution on the date hereof. 18. The City covenants that it shall comply with the pro- posed Tax Reform Act of 1986 as set forth in the Conference Com- mittee Bill of the Committee of Conference consisting of members of the House Ways and Means Committee and the Senate Finance Com- mittee, or any successor legislation (the Act), to the extent such legislation is applicable to the bonds, including'~ovisions which may require the City at any time to rebate profits from the I I I ' -18- investment of the proceeds of the Bonds to the United States unless the City receives an opinion of nationally recog- nized bond counsel that such compliance is not required to pre- vent interest on the bonds from being includable in the gross In- come of the registered owners thereof under the law then in effect or any pending legislation. The City shall pay from its general funds the amount required to be rebated to the United States pursuant to the Act. 19. The City covenants that it shall not permit the gross proceeds of the bonds to be used in any manner that would result in (a) 5% or more of such proceeds being considered as having been used directly or indirectly to make or finance loans to per- sons other than a governmental unit as provided in the Act or (b) 10% or more of such proceeds being considered as having been used directly or indirectly in any trade or business carried on by any person other than a governmental unit as provided in such Act, unless the City receives an opinion of nationally recognized bond counsel that such restriction is not required to prevent the in- terest on the bonds from being includable in the gross income of the registered owners thereof under the laws then in effect or any pending legislation. 20. The City shall not take or omit to take any action the taking or o~ission of which will cause the bonds to be {'arbi- trage bonds" within the meaning of Section 103(c) of the Internal -19- Revenue Code of 1954, as amended, and regulations issued pursuant thereto. Such officers of the City as may be requested are hereby authorized and directed to execute an appropriate certifi- cate setting forth the expected use and investment of the pro- ceeds of the bonds in order to show that such expected use and investment will not violate the provisions of Section l03(c) and regulations issued pursuant thereto. Such certificate shall be in such form as may be requested by bond counsel for the City. 21. All resolutions or parts of resolutions in conflict herewith are hereby repealed. 22. This resolution shall take effect immediately. The undersigned Clerk of the City of Virginia Beach, Vir- ginia, hereby certifies that the foregoing constitutes a true and correct extract from the minutes of an adjourned meeting of the City Council of Virginia Beach held on the 11th day of September, 1986, and of the whole thereof so far as applicable to the mat- ters referred to in such extract. WITNESS my signature and the seal of the City of Virginia Beach, Virginia, this 11 day of September, 1986. (SEAL) Clerk, City of Virginia Beach, Virginia - 7 - Item III-E. ANNOUNCEMENT ITEM # 26003 The City Manager ANNOUNCED the APPOINTMENT of Fagan D. Stackhouse as Personnel Director to fill the vacancy created by the retirement of Phyllis Millette on June 30, 1986. It is expected that he will assume his responsibilities in Virginia Beach on or about November 1, 1986. Mr. Stackhouse has nearly fifteen (15) years of public personnel experience in City government, and is currently Assistant Personnel Director of the City of Milwaukee, Wisconsin. Mr. Stackhouse will receive a salary of $55,000 per year as Personnel Director and will be directing a total staff of thirty-five (35) persons C~_+~_h~_ 11 1no~ - 7a - Cit,y < >1 Vit--gi 1.-'11a I3eE~ch September 11, 1986 OFFICE OF THE CITV MANAGER (804) 427-4242 MUNICIPAL CENTER VIRGINIA BEACH. VIRGINIA 23.-56-8002 The Honorable Mayor Members of the Council Dear Council Members: I am happy to announce the appointment of Fagan D. Stackhouse as Personnel Director to fill the vacancy created by the retire- ment of Phyllis Millette on June 30, 1986. It is expected that he will assume his responsibilities in Virginia Beach on or about November 1, 1986. Mr. Stackhouse has nearly fifteen years of public personnel experience in city government, and is currently Assistant Personnel Director for the City of Milwaukee, Wisconsin. Prior to his experience in Milwaukee, he had held personnel positions in Inkster and Grand Rapids, Michigan, and in Raleigh, Lumberton and Greensboro, North Carolina. The new director holds a Bachelor of Science degree in Political Science from North Carolina A & T State University and a Master of Arts degree in Public Administration from the University of North Carolina. In addition, he has pursued post graduate studies in Labor Law, Industrial Relations and Negotiations, Graduate Level Statistics, Economics and related courses at Western Michigan University and Grand Valley state College. The Management Consulting firm of Mercer/Slavin, Inc., had been chosen by the city to screen applications for the position. Mr. Stackhouse was selected from more than two hundred appli- cations received nation-wide, and he will be paid a salary of $55,000 per year as Personnel Director for ~he city. He will be heading a department with a total staff of 35 persons and an annual budget in excess of $1.1 million. The thirty-nine year old director and his wife have two children. He is a board member of his Rotary Club in Milwaukee and is a committee chairman for Boy Scouts of America. His professional activities include membership in the American Society of Personnel Administrators and service as a State Board Member of the International Personnel Management Association - Wisconsin. THM:eh ~ yours; Thomas H. Mu City Manager - 8 - ADJOURNMENT ITEM # 26004 Upon motion by Councilman Fentress, seconded by Councilman Balko and BY ACCLAMATION City Council ADJOURNED the Meeting at 4:35 P.M. a~ () //~ Beverl~ O. Hooks Chief Deputy City Clerk ~~~- R th Hodges Smith, CMC City Clerk City of Virginia Beach Virginia n__L__L___ ~1 1nn/